Renters Insurance Info

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Home What is Covered by Renter's Insurance? What do I do to get renters insurance coverage

What do I do to get renters insurance coverage

Renting their property was preferred by  33.8% of residents in 2000. Opting for this rather than owning a home results from a variety of reasons: saving money, not committing to a property, and planning future moves. A majority of apartment renters grosses less than $50,000 annually, and monthly rent payments are often much easier to fit into their budgets than mortgage payments. In order to save money, renters also attempt to cut costs where they can, such as neglecting to get renters insurance coverage. A recent study found that only 40% of renters had renters insurance. This means that nearly 2/3 of renters are putting their property at risk.

Renters insurance is separate from the homeowners policy held by the landlord. Should there be structural damage to the home or apartment, the homeowners policy will pay for the costs or repair, but if that damage also results in a loss of the renter's personal property, the homeowners insurance will not pay for it. It will be up to the renter to pay for his own losses. Some without renters insurance coverage erroneously believe that they can save money by avoiding the average $10 -  $20 per month, but when their property is burglarized or if a natural disaster occurs, the uncovered renter finds himself having to pay thousands of dollars out of his own pocket to replace his stolen or damaged property: televisions, computers, jewelry, and furniture.

Renters insurance coverage is not difficult to obtain, and to get started, a thorough assessment of everything in the rental property must be made. Getting a general estimate on the value of the goods owned by the renter will help him to decide the best policy to get the appropriate renters insurance coverage. Many states have an insurance board website that can be found by searching for "insurance board state". There will be links to information about the state's particular laws governing renters insurance coverage and resources for locating nearby agents. Renters should contract with insurance agents in their state since the laws vary across the nation.

The renter will typically have a choice of renters insurance coverage levels. The most basic will often pay for losses incurred during the most common events: fire, lightening damage, plumbing problems leading to water damage, theft, and renter's liability. These are the cheapest and the most popular plans. For the average renter, this should suffice, but for those looking for additional coverage to pay in the event of natural disasters such as hurricanes, floods, or earthquakes, should ask their agent about separate policies for these. Renters insurance coverage might also not pay enough if the renter has a lot of expensive items: electronics, computers, jewelry. Further coverage can be purchased for a slight increase in the monthly premiums paid. Raising the deductible and opting for a single annual premium payment rather than monthly installments can both help the renter to save money on his renters insurance coverage.

Renters insurance coverage will save money in the long run by letting the renter avoid thousands of dollars in costs to replace his lost or damaged property.